Tuesday, August 30 2016 15:36
Alexandr Avanesov

May Yerevan Thermal Power Plant become a property of Gazprom?

May Yerevan Thermal Power Plant become a property of Gazprom?

ArmInfo. The Yerevan Thermal  Power Plant (TPP) owes  $52.3 mln to Gazprom Armenia CJSC, the  Armenian subsidiary of Gazprom, life.ru reports, citing sources close  to the Russian-Armenian intergovernmental commission.   

According to those sources, Yerevan TPP - one of the major customers  of the Russian state monopoly - owed 52.3 mln USD to Gazprom Armenia  by July 2016.   

The press office of Gazprom Armenia has told ArmInfo that Yerevan TPP  has such a debt indeed, but noted that the major part of the debt has  already been redeemed and negotiations on the remaining part of the  debt are underway.  

To recall, three years ago Armenia also had problems with its debts  (300 mln USD) to Gazprom. At that time, a decision was taken to  transfer a 20% stake in ArmRusgasprom and the uncompleted fifth power  unit of the Hrazdan TPP to the Russian side.     

Theoretically, the state must have no debts after the deal: under the  contract between the two governments the Armenian side assumed an  obligation not to "generate" them any more, a governmental official  has told Life. New debts affect first of all Gazprom's subsidiary,  the interlocutor in the gas concern says. Under the agreement with  Armenia, Gazprom's subsidiary is working out a general scheme of gas  supply for Armenia and it needs financial means for that.  

Russia carries out its obligations, but the Armenian side does not,  the Russian governmental official says.  In September 2016, Russia  reduced the gas price for Armenia from $189 to $165 per 1 cu m, as  stipulated in the agreement, Life's source recalls, noting that  Gazprom was given a priority access to electricity export and  purchase from the fifth power unit of Hrazdan TPP. The government  asked the sides to repay the debt by early November 2016, the  official says. 

Thus, the old scheme of debt redemption by transferring property may  be applied in Armenia again, Life says. In this case, the matter will  concern Yerevan TPP. "The transfer of property is quite a popular but  last resort measure in power engineering," says Alexey Grivach,  Deputy Director of the National Energy Security Fund. "For example,  Pskovskiy region was trying to settle its problems with Gazprom using  similar scheme. Often thermal power producers had to put in pledge  their plants to Gazprom because of the debts for the supplied gas.  The property should be assessed, if the assets correspond to the  amount of the debt, such a deal will be beneficial for the monopoly.  

"Usually, debts are generated on the level of consumer, than they go  up the chain and reach the supplier of the fuel", Director General of  the Institute of National Energy Sergei Pravosudov adds. Formally  Gazprom has the right to stop supplying gas to the TPP. This would  evoke wide response and it would be short- sighted to spoil relations  between Armenia and Russia, so it is unlikely that the gas supply to  TPP will be stopped, Life's interlocutor close to Armenia's Energy  Ministry thinks. 

"Cutting off gas is a too strong social factor, which may spark  national demonstrations like the ones held in previous years, when  the people were protesting against high tariffs on fuel", political  scientist, senior consultant at the Saint Petersburg Center of Social  Studies Oleg Andreev recalls. "National demonstrations in turn may  lead to shift of power. Russia is very interested in maintaining  friendly relations with Armenia as it is the main ally in the  Caucasus. So, no matter how much Gazprom wants to cut off gas, the  government will not allow it doing that", the interlocutor is  assured. "It is even better to have such small debtors, they can be  twisted around finger", he says. 

To note, on June 17 Armenian Parliament approved the Agreement with  IBRD signed on May 12 2016, under which the World Bank will provide a  US$30 million IBRD loan of variable spread (approximately 1.8%) with  a 14.5-year grace period and the total repayment term of 25 years.  Deputy Minister of Energy and Natural Resources Areg Galstyan said  the main part of the loan will be repaid in 2030-2040. The tranches  will be issued in the period of 2016 up to July 31 2030. The loans  will be provided to the Armenian NPP ($8.5mln) and Yerevan TPP  ($21.5mln). Both the facilities must re-register the loans previously  raised from the local commercial bank under high interests. In  addition, the Yerevan TPP will redeem its debt to Gazprom Armenia for  the gas supplied. The deputy minister said that no privatization of  the state facilities is planned in the mid-term outlook.  Consequently, the burden of the debt will be on the given two  companies under the subcontract with the Finance Ministry.

POST A COMMENT
Input digits     


News
Ardshinbank has extended the campaign for issuing a digital card for 1 dramArdshinbank has extended the campaign for issuing a digital card for 1 dram
Growth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and importsGrowth of Armenia`s economic activity to 14.5% in 10 months was  accompanied by increase in exports and imports
Unprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 eurosUnprecedented offer from FLYONE ARMENIA: Beirut, Dubai, Tel Aviv for  only 89 euros
Over a half of Armenia`s population live in  communities actively  involved in  CoM East projectOver a half of Armenia`s population live in  communities actively  involved in  CoM East project
Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan Armenia`s transport infrastructure yet unprepared for new geoeconomic  configuration - Vahe Davtyan 
AMD 4․653․223 to AMD 4․653․223 to "Aren Mehrabyan" foundation: beneficiary of "The Power of One Dram" for December is the Health Fund for Children of Armenia
Forecast: Without social support, poverty rate in Armenia could rise  to 49%Forecast: Without social support, poverty rate in Armenia could rise  to 49%
PSRC starts process of revising electricity tariffsPSRC starts process of revising electricity tariffs
Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019Poverty rate in Armenia in 2021 increased by 0.1% compared to 2019
Armenia`s government to support IT sector Armenia`s government to support IT sector 
Ardshinbank holds a campaign 10000 AMD for every 300th client making a money transferArdshinbank holds a campaign 10000 AMD for every 300th client making a money transfer
Armenia`s share in UNECE programmes 22%Armenia`s share in UNECE programmes 22%
EU to issue 33mln EUR grant to Armenia EU to issue 33mln EUR grant to Armenia 
Nikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effectNikol Pashinyan: Introduction of  universal income declaration system  will have significant anti-corruption effect
On December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 millionOn December 1, Ameriabank to start initial placement of next tranche  of USD bonds in amount of $10 million
Models of cooperation between public and private sectors are being  developed in ArmeniaModels of cooperation between public and private sectors are being  developed in Armenia
Evocabank launches new contactless cashless payment tool- mPOS for  business entitiesEvocabank launches new contactless cashless payment tool- mPOS for  business entities
Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.Joint Initative of HSBC Bank in Armenia and Jinishian Memorial Foundation (JMF) promotes innovative and sustainable agriculture among the small holder farmers.
Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman Civil Contract nominates Armen Nurbekyan for post of CBA Deputy  Chairman 
Economy Ministry to provide Economy Ministry to provide "oxygen" for IT companies working with  international market 
Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities Party: Draft state budget of Artsakh for 2023 does not reflect  internal and external realities
Mher Grigoryan noted key importance of programs implemented jointly  with EBRD Mher Grigoryan noted key importance of programs implemented jointly  with EBRD 
Vahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDPVahan Kerobyan: Our goal is to bring the volume of investments to 25%  of GDP
Ameria PhonePOS.  New application for receiving non-cash payments with a smartphoneAmeria PhonePOS.  New application for receiving non-cash payments with a smartphone
EDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  SargsyanEDB developed concept for establishing platform on which  multicurrency digital transactions may be carried out - Tigran  Sargsyan
EDB announces 2nd contest of digital technologiesEDB announces 2nd contest of digital technologies
Economy Ministry to support IT companies affected by dram  appreciationEconomy Ministry to support IT companies affected by dram  appreciation
Expert: There are a lot of random people in the tourism sector of  Armenia todayExpert: There are a lot of random people in the tourism sector of  Armenia today
Incomplete fulfillment of capital expenditures indicates a lack of  professionalism - EconomistIncomplete fulfillment of capital expenditures indicates a lack of  professionalism - Economist
EDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMDEDB forecasts 4.2% GDP growth in Armenia in 2023 and gradual  devaluation of AMD
Sporadic construction of solar power plants could undermine Armenia`s  food security - expertSporadic construction of solar power plants could undermine Armenia`s  food security - expert
ADB to help Armenia develop wind energyADB to help Armenia develop wind energy
US considers granting Armenia market economy statusUS considers granting Armenia market economy status
Another dollar tranche of bonds from IDBankAnother dollar tranche of bonds from IDBank
Tourists arriving in Armenia faced difficulties due to cashless  payment requirements - MPTourists arriving in Armenia faced difficulties due to cashless  payment requirements - MP
Armenia`s tax authorities on peculiarities of taxation when renting  apartmentArmenia`s tax authorities on peculiarities of taxation when renting  apartment
AraratBank acts as an underwriter of National Mortgage Company RCO bonds   AraratBank acts as an underwriter of National Mortgage Company RCO bonds  
Converse Bank customer wins Visa campaignConverse Bank customer wins Visa campaign
Armenia`s economy recovered quickly after `September shock` - Vahan  KerobyanArmenia`s economy recovered quickly after `September shock` - Vahan  Kerobyan
AraratBank launches Google Pay for its card usersAraratBank launches Google Pay for its card users
Goods imported to Armenia to be liable to excise taxGoods imported to Armenia to be liable to excise tax
Armenia`s national debt in terms of figures not essential - Armenia`s  premier Armenia`s national debt in terms of figures not essential - Armenia`s  premier 
French Development Agency to open permanent office in YerevanFrench Development Agency to open permanent office in Yerevan
Proposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran JrbashyanProposed reform to introduce system of mandatory universal income  declaration system for all resident citizens in Armenia cannot ensure  achievement of the declared goals: Tigran Jrbashyan
IDBank  “MalatiaIDBank  “Malatia" branch now more comfortable and modern
Largest mining company in Armenia presents its first ESG reportLargest mining company in Armenia presents its first ESG report
It is already possible to make payments with IDBank cards via Apple PayIt is already possible to make payments with IDBank cards via Apple Pay
 Converse Bank announces the launch of the  new coupon bonds placement Converse Bank announces the launch of the  new coupon bonds placement
Vine and Wine Foundation of Armenia: Volumes of wine production in  Armenia almost doubled over 5 yearsVine and Wine Foundation of Armenia: Volumes of wine production in  Armenia almost doubled over 5 years
Armenia`s minister of territorial administration hosts  Ukrainian-Armenian businessmenArmenia`s minister of territorial administration hosts  Ukrainian-Armenian businessmen
Iranian Minister of Energy announces launch of project for  synchronization of electricity between   Iran, Azerbaijan, Armenia and RussiaIranian Minister of Energy announces launch of project for  synchronization of electricity between  Iran, Azerbaijan, Armenia and Russia
Armenia`s economy most likely to not reach its historical high by the  end of 2022: Haykaz FanyanArmenia`s economy most likely to not reach its historical high by the  end of 2022: Haykaz Fanyan
Yerevan, Tehran continue to expand economic relationsYerevan, Tehran continue to expand economic relations
Success of the family business based in Tavush: from a home to a guest house and a small winerySuccess of the family business based in Tavush: from a home to a guest house and a small winery
Armenia becomes popular destination for BelarusiansArmenia becomes popular destination for Belarusians
Satlantis CEO: Armenia did not buy an expensive Mercedes, but rather   established a plant that will produce itSatlantis CEO: Armenia did not buy an expensive Mercedes, but rather   established a plant that will produce it
Robert Khachatryan: Satellite Control Center in Armenia to be ready  by the end of the yearRobert Khachatryan: Satellite Control Center in Armenia to be ready  by the end of the year
Armenia starts construction of its first satelliteArmenia starts construction of its first satellite
Participation of GeoProMining in state subvention projects in Armenia reaches 1 billion 700 million drams ($ 4.2 million )Participation of GeoProMining in state subvention projects in Armenia reaches 1 billion 700 million drams ($ 4.2 million )
Significant progress has been made on the issue of launching the  ferry crossing Poti - Port Kavkaz - Deputy MinisterSignificant progress has been made on the issue of launching the  ferry crossing Poti - Port Kavkaz - Deputy Minister
Read more


Exchange rates
06.12.2022
RUB6.28-0.08
USD395.59-0.32
EUR415.41-1.68
GBP481.67-3.20
CAD290.26-4.47
JPY28.96-0.28
CNY56.720.47
CHF420.08-2.95